Billy Jean Evert, a former professional tennis star, operates B.J.'s Tennis Shop at the Jackson Lake Resort. At the beginning of the current season, the ledger of B.J.'s Tennis Shop showed Cash \(\$ 2,500\), Merchandise Inventory \(\$ 1,700\), and Common Stock \(\$ 4,200\). The following transactions were completed during April:

Apr. 4 Purchased racquets and balls from Robert Co. \(\$ 640\) FOB shipping point, terms \(3 / 10, n / 30\).

6 Paid freight on Robert purchase \(\$ 40\).

8 Sold merchandise to members \(\$ 900\), terms \(\mathrm{n} / 30\). The merchandise sold had a cost of \(\$ 600\).

10 Received credit of \(\$ 40\) from Robert Co. for a damaged racquet that was returned.

11 Purchased tennis shoes from Niki Sports for cash, \(\$ 300\).

13 Paid Robert Co. in full.

14 Purchased tennis shirts and shorts from Martina's Sportswear \(\$ 700\), FOB shipping point, terms \(2 / 10, \mathrm{n} / 60\).

15 Received cash refund of \(\$ 50\) from Niki Sports for damaged merchandise that was returned.

17 Paid freight on Martina's Sportswear purchase \(\$ 30\).

18 Sold merchandise to members, \(\$ 800\), terms \(n / 30\). The cost of the merchandise sold was \(\$ 530\).

20 Received \(\$ 500\) in cash from members in settlement of their accounts.

21 Paid Martina's Sportswear in full.

27 Granted an allowance of \(\$ 30\) to members for tennis clothing that did not fit properly.

30 Received cash payments on account from members, \(\$ 500\).

The chart of accounts for the tennis shop includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Merchandise Inventory, No. 201 Accounts Payable, No. 311 Common Stock, No. 401 Sales, No. 412 Sales Returns and Allowances, No. 501 Cost of Goods Sold.
\section*{Instructions}

(a) Journalize the April transactions using a perpetual inventory system.

(b) Enter the beginning balances in the ledger accounts and post the April transactions.
(Use \(\mathrm{J} 1\) for the journal reference.)

(c) Prepare a trial balance on April 30, 1998.